Pebblebrook Story

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PEB -- USA Stock  

Report: 30th of July 2020  

Macroaxis News
  
By Raphi Shpitalnik
This article is aimed at all current or potential Pebblebrook Hotel investors. I will look into why albeit cyclical Pebblebrook Hotel disturbance, the long term basic indicators of the company are still strong. Despite somewhat uncertain basic indicators, Pebblebrook Hotel sustained solid returns over the last few months and may actually be approaching a breakup point. This firm moves indifferently to market moves.
Pebblebrook Hotel slips over 2 percent albeit market build up

The company's average rating is Sell from 12 analysts. Our buy or sell recommendations tool can be used to cross verify current analyst consensus on Pebblebrook Hotel Trust and to analyze the firm potential to grow in the current economic cycle. The firm dividends can provide clues to the current value of the stock. The entity one year expected dividend income is about $0.77 per share. Lets now take a look at Pebblebrook Hotel Current Valuation. In accordance with recently published financial statements Pebblebrook Hotel Trust has Current Valuation of 4.21 B. This is 72.25% lower than that of the Real Estate sector, and significantly higher than that of REIT?Hotel & Motel industry, The Current Valuation for all stocks is 74.68% higher than Pebblebrook Hotel.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Pebblebrook Hotel income statement, its balance sheet, and the statement of cash flows. Potential Pebblebrook Hotel investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Pebblebrook Hotel investors may use each financial statement separately, they are all related. The changes in Pebblebrook Hotel's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Pebblebrook Hotel's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Pebblebrook Hotel fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Pebblebrook Hotel performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Pebblebrook Hotel shares is the value that is considered the true value of the share. If the intrinsic value Pebblebrook is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Pebblebrook Hotel. Please read more on our fundamental analysis page.

Are Pebblebrook Hotel Earnings Expected to grow?

The future earnings power of Pebblebrook Hotel involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Pebblebrook Hotel factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Pebblebrook Hotel stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected.
Earnings Estimate

And What about dividends?

A dividend is the distribution of a portion of Pebblebrook Hotel earnings, decided and managed by the Pebblebrook Hotel's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Pebblebrook Hotel dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Pebblebrook one year expected dividend income is about $0.77 per share.
As of July 12, 2020, Preferred Dividends Income Statement Impact is expected to decline to about 29.7 M. In addition to that, Payment of Dividends and Other Cash Distributions is expected to decline to about (189.7 M).
Last ReportedProjected for 2020
Preferred Dividends Income Statement Impact32.6 M29.7 M
Payment of Dividends and Other Cash Distributions-184.8 M-189.7 M
Dividend Yield 0.06  0.0497 
Dividends per Basic Common Share 1.75  1.50 
Investing in dividend-paying stocks, such as Pebblebrook Hotel Trust is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Pebblebrook Hotel must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Pebblebrook Hotel. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
View Dividends

How important is Pebblebrook Hotel's Liquidity

Pebblebrook Hotel financial leverage refers to using borrowed capital as a funding source to finance Pebblebrook Hotel Trust ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Pebblebrook Hotel financial leverage is typically calculated by taking the company's all of the interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. The map below shows the current breakdown between Pebblebrook Hotel's total debt and its cash.
Liquidity

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis Consensus

Pebblebrook Hotel Gross Profit

Pebblebrook Hotel Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Pebblebrook Hotel previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Pebblebrook Hotel Gross Profit growth over the last 10 years.
Gross Profit

Acquisition by Bonny Simi of 1965 shares of Pebblebrook Hotel subject to Rule 16b-3

Legal trades by Pebblebrook Hotel insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Pebblebrook Hotel Trust insider trading alert for grant of common shares by Bonny Simi, the corporate stakeholder, on 3rd of June 2020. This event was filed by Pebblebrook Hotel Trust with SEC on 2020-01-02. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

An Additional Perspective On Pebblebrook Hotel Trust

Pebblebrook Hotel preserves 5.56 x of cash per share. Pebblebrook Hotel has a beta of -0.1742. Let's try to break down what Pebblebrook's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Pebblebrook Hotel will likely underperform. The beta indicator helps investors understand whether Pebblebrook Hotel moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Pebblebrook deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. Pebblebrook Hotel Trust has a total of 130.76 Million outstanding shares. Majority of Pebblebrook Hotel Trust outstanding shares are owned by third-party entities. These other institutions are referred to non-private investors that are looking to secure positions in Pebblebrook Hotel Trust to benefit from reduced commissions. Consequently, institutional investers are subject to different set of regulations than regular investors in Pebblebrook Hotel. Please pay attention to any change in the institutional holdings of Pebblebrook Hotel Trust as this could imply that something significant has changed or about to change at the company. Also note that almost twenty-six million one hundred fifty-two thousand invesors are currently shorting Pebblebrook Hotel expressing very little confidence in its future performance. Pebblebrook Hotel Revenue Per Employee is somewhat stable at the moment. Pebblebrook Hotel Earnings Before Interest Taxes and Depreciation Amortization EBITDA is somewhat stable at the moment. Furthermore, Pebblebrook Hotel Average Assets is increasing over the last 8 years.

Another setback for Pebblebrook Hotel investors

Current market risk adjusted performance is at -3.24. Pebblebrook Hotel Trust is displaying above average volatility of 6.51 over selected time horizon. Investors should scrutinize Pebblebrook Hotel Trust independently to ensure intended market timing strategies are aligned with expectations about Pebblebrook Hotel volatility.

Our Conclusion on Pebblebrook Hotel

While other players in reit?hotel & motel industry are either recoverring, or due for a correction, Pebblebrook Hotel may not be as strong as the other in terms of longer-term growth potentials. To conclude, as of 30th of June 2020, our analysis shows that Pebblebrook Hotel moves indifferently to market moves. The company is fairly valued and projects below average chance of financial distress for the next 2 years. However, our concluding 30 days advice on the company is Strong Sell. The inconsistency in the assessment between current Pebblebrook valuation and our trade advice on Pebblebrook Hotel Trust is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Pebblebrook Hotel.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile
This story should be regarded as informational only and should not be considered as solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Pebblebrook Hotel Trust. Please refer to our Terms of Use for any information regarding our disclosure principles.
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